Prudential Fraud Suit Over $477M In RMBS Remanded In NJ

By Linda Chiem

Law360, New York (October 31, 2013, 4:59 PM ET) -- A New Jersey federal judge on Tuesday remanded to state court a fraud and racketeering suit launched by Prudential Insurance Co. of America and others alleging RBS Financial Products Inc. and its affiliates fraudulently sold $477 million in residential mortgage-backed securities.

U.S. Senior District Judge Dickinson R. Debevoise rejected RBS’ argument that the suit needed to stay in federal court because it was related to the bankruptcy proceedings for three loan originators behind nearly half of the 23 certificates at issue in the suit. The judge...